2012 ALBANY COUNTY EXECUTIVE BUDGET

Transcription

1 2012 ALBANY COUNTY EXECUTIVE BUDGET FUND BALANCE and RESERVES MICHAEL G. BRESLIN County Execu ve

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3 FUND BALANCE The undesignated, unappropriated fund balance is one measure of Albany County s overall financial health. Also known as surplus, the fund balances listed on the next page can be appropriated by the Legislature as part of the budget process to address instances in which appropria ons exceed an cipated revenues. If, by the end of the fiscal year, actual expenditures exceeded revenues received, the surplus can also be used to offset the shor all in revenue. Conversely, if revenues received exceed expenditures, the surplus will increase at the end of the year. The fund balance can be appropriated only as part of the budget process and can not be appropriated or u lized once the budget has been adopted. It is important to note that fund balance is an accoun ng tool and is not completely backed by cash in the same way as reserves. The informa on in the chart on the next page, as reported in the County s Annual Financial Report to the State Comptroller s Office, is a snap shot of the condi ons on December 31, The surplus is used as a diagnos c tool by ra ng agencies to determine the County s credit ra ng and risk when it is seeking funding through the issuance of bonds or bond an cipa on notes. As the chart indicates, the County s surplus has diminished significantly over recent years. In 2007, the fund balance for the General was approximately $33 million. At of the end of 2010, the fund balance was approximately $19.6 million reflec ng a decrease of 40.6 percent over a three year me frame. This figure may decrease further, or be added to, depending on how revenues compare to expenditures in the 2011 annual financial report. The consistent use of surplus to address spending not backed by revenue has impacted the County s credit ra ng. In July 2010, the County s Aa2 credit ra ng was given a nega ve outlook by Moody s Investor Services. In September 2011, Moody s downgraded the County s credit ra ng once again, resul ng in a change in grade level from Aa2 to Aa3. The projected surplus at the close of 2012 for the General represents 4.1 percent of its $472.1 million opera onal budget. Recommended guidelines for municipali es range from percent. County of Albany State of New York 2012 Executive Budget Page 45

4 UNAPPROPRIATED UNDESIGNATED FUND BALANCE BY FUND Close Close Close Close Close 2005 General 35,569,746 (2,981,441) 33,588,305 (2,515,535) 31,072,770 (5,156,181) 25,916,589 1,833,484 27,750,073 34, , ,781 (529,154) 259, , ,072 (298,039) 82,033 Machinery 102,508 (92,750) 9,758 16,542 26,300 70,064 96,364 (38,272) 58,092 Sewer 1,419, ,872 1,961,012 76,177 2,037,189 (922,092) 1,115, ,632 1,773,729 Nursing Home 682,521 (705,542) (23,021) 710, ,590 (635,184) 52,406 2,337,927 2,390,333 Total 37,808,593 (2,483,758) 36,324,835 (2,241,359) 34,083,476 (6,522,948) 27,560,528 4,493,732 32,054, Close Close Close Close 2009 General 2,378,915 30,128,988 2,823,360 32,952,348 (3,620,731) 29,331,617 (12,695,500) 16,636, , ,638 63, ,130 (407,955) 18,175 (1,970) 16,205 Machinery 46, ,699 (99,004) 5,695 52,141 57, , ,614 Sewer 1,727,231 3,500,960 (1,854,271) 1,646,689 (397,667) 1,249, ,147 2,213,169 Nursing Home (659,324) 1,731,009 (5,412,737) (3,681,728) 3,011,163 (670,565) 1,346, ,504 Total 3,774,034 35,828,294 (4,479,160) 31,349,134 (1,363,049) 29,986,085 (10,264,476) 19,721, Close of 2010 Use 2011 Close 2011 Proposed Use 2012 Close 2012 General 2,940,634 19,576, ,576, ,576, , , , ,098 Machinery (76,380) 104, , ,234 Sewer 1,218,257 3,431,426 (1,260,000) 2,171,426 (1,200,000) 971,426 Nursing Home (117,265) 558, , ,239 Total 4,123,139 23,844,748 (1,260,000) 22,584,748 (1,200,000) 21,384,748

5 RESERVES BACKGROUND Albany County has established a number of reserve funds, which are segregated from the opera ng budget and intended to provide resources to meet future needs, con ngencies, and capital outlays. These reserves were created through both discre onary means and to sa sfy certain legal obliga ons. Included in this sec on is a summary of Albany County s reserve accounts, along with the intended use of any reserve funds in RESERVE ACCOUNTS AND RECOMMENDED USES The table on the following page provides a descrip on of Albany County s reserve accounts and the proposed 2012 appropria on. County of Albany State of New York 2012 Executive Budget Page 47

6 RESERVE TITLE s Close of 2009 s Close of 2010 s Close of 2011 Proposed Use of s for 2012 s Close of 2012 PURPOSE E 911 $ 209,143 $ 695,634 $ 695,634 $ - $ 695,634 Emergency Telephone System (Restricted Use) DWI $ 203,077 $ 238,433 $ 238,433 $ - $ 238,433 Stop DWI Program (Restricted Use) Stormwater Coalition $ 20,385 $ 4,316 $ 4,316 $ - $ 4,316 Stormwater Management (Restricted Use) Employee Benefits $ 503,056 $ 1,000 $ 1,000 $ - $ 1,000 Post Employment Health Insurance Benefits (GASB 45) Debt $ 8,901,119 $ 250,000 $ 4,521,874 $ - $ 4,521,874 Payment of County Debt Service Civic Center Debt $ 780,152 $ 1,232,389 $ 1,232,389 $ - $ 1,232,389 Payment for Civic Center Debt Civic Center Capital $ 1,860,815 $ 1,860,815 $ 1,860,815 $ - $ 1,860,815 Capital Improvement or Eligible Equipment Capital Projects $ 2,335,350 $ 2,335,350 $ 2,335,350 $ (1,500,000) $ 835,350 Capital Improvement or Eligible Equipment Capital Repairs $ 2,955,750 $ 2,955,750 $ 2,955,750 $ - $ 2,955,750 Repairs to Capital Improvments or Eligilble Equipment Economic Development $ 1,115,000 $ 1,115,000 $ 1,115,000 $ - $ 1,115,000 Vista Technology Park Workers Compensation $ 7,302,708 $ 2,037,624 $ 6,037,624 $ - $ 6,037,624 Workers Compensation Insurance $ 398,873 $ 306,924 $ 306,924 $ - $ 306,924 General Liability Insurance Sewer Capital Repairs $ 500,134 $ 215,691 $ 215,691 $ - $ 215,691 Repairs to Capital Improvments or Eligilble Equipment Sewer Repairs $ 351,287 $ 352,444 $ 352,444 $ - $ 352,444 Sewer District Repairs Sewer Debt $ 194,926 $ 195,236 $ 195,236 $ - $ 195,236 Payment of Sewer District Debt Service Sewer Reitirement $ 251,561 $ 251,561 $ 251,561 $ - $ 251,561 Payment for Sewer District Retirement Contribution Nursing Home Capital Projects $ 339,187 $ 233,128 $ 233,128 $ - $ 233,128 Costs Associated with New Facility Nursing Home Debt $ 588,450 $ 308,355 $ 308,355 $ - $ 308,355 Payment of Nursing Home Debt Service Hospital and Medical Insurance $ 5,000,000 $ 5,000,000 $ 5,000,000 $ - $ 5,000,000 Total $ 33,810,972 $ 19,589,650 $ 27,861,525 $ (1,500,000) $ 26,361,525 Requirement of Health Insurance Administrator (Restricted Use)